Asset Coverage Ratio Clause Samples
The Asset Coverage Ratio clause defines the minimum level of assets a borrower must maintain relative to its outstanding debt obligations. Typically, this clause requires the borrower to ensure that the value of its assets exceeds its debt by a specified multiple, which is periodically tested through financial reporting. By setting this threshold, the clause protects lenders by reducing the risk of default and ensuring the borrower remains financially stable throughout the term of the agreement.
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Asset Coverage Ratio. Borrower shall maintain at all times a ratio of Borrower’s unrestricted cash maintained in accounts at Bank plus the amount of all Eligible Accounts (as calculated and on line #15 of the Borrowing Base Certificate) to the amount of all Obligations owing to Bank of at least 1.50 to 1.00.
Asset Coverage Ratio. Such Borrower shall at all times maintain an Asset Coverage Ratio of its Designated Borrower Asset Coverage Ratio Percentage or such other more restrictive ratio as may be set forth in the most recent Prospectus or most recent SAI (if applicable) to such Mauritius Parent Borrower.
Asset Coverage Ratio. After the Restatement Effective Date, the Borrower will not permit the Asset Coverage Ratio to be less than 2.10 to 1 at any time.
Asset Coverage Ratio. The Borrower will not permit the Asset Coverage Ratio at the last day of any fiscal quarter of the Borrower to be less than 2.00 to 1 at any time.
Asset Coverage Ratio. The Borrower shall not at any time permit its Asset Coverage Ratio to be less than 8 to 1 or such other more restrictive ratio as may be set forth in any prospectus with respect to the Borrower.
Asset Coverage Ratio. The Borrower will not permit the Asset Coverage Ratio to be less than 1.50 to 1 at any time.
Asset Coverage Ratio. The Company will not permit the Asset Coverage Ratio as of the last Business Day of any fiscal quarter of the Company to be less than 1.50:1.00.
Asset Coverage Ratio. Such Borrower shall at all times maintain an Asset Coverage Ratio at least equal to its Permitted Asset Coverage Ratio or such other more restrictive ratio as may be set forth in the most recent Prospectus or most recent SAI (if applicable) of such Borrower or as required by the Act.
Asset Coverage Ratio. The Asset Coverage Ratio to be less than 2.00 to 1.00.
Asset Coverage Ratio. The Borrower shall maintain at all times an Asset Coverage Ratio of not less than 1.00:1.